FIRSTREGULARSESSION
HOUSEBILLNO.1084
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEOEHLERKING.
2518H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection393.135,RSMo,andtoenactinlieuthereofthreenewsectionsrelatingto
electricutilities.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section393.135,RSMo,isrepealedandthreenewsectionsenactedinlieu
2thereof,tobeknownassections393.135,393.1250,and393.1900,toreadasfollows:
393.135.1.Exceptasprovidedinsubsection2ofthissection,anychargemadeor
2demandedbyanelectricalcorporationforservice,orinconnectiontherewith,whichisbased
3onthecostsofconstructioninprogressuponanyexistingornewfacilityoftheelectrical
4corporation,oranyothercostassociatedwithowning,operating,maintaining,orfinancing
5anypropertybeforeitisfullyoperationalandusedforservice,isunjustandunreasonable,
6andisprohibited.
7 2.(1)Anelectricalcorporationshallbepermitted,subjecttothelimitations
8providedforinthissubsection,toincludeanyamountsrecordedtoconstructionworkin
9progressforanynewnaturalgasgeneratingunitinthecorporation'sratemakingrate
10base.Theinclusionofconstructionworkinprogressallowedunderthissubsectionshall
11beinlieuofanyotherwiseapplicableallowanceforfundsusedduringconstructionthat
12wouldhaveaccruedfromandaftertheeffectivedateofnewbaseratesthatreflect
13inclusionoftheconstructionworkinprogressinratebase.Thecommissionshall
14determine,inaproceedingundersection393.170,theamountofconstructionworkin
15progressthatmaybeincludedinratebase.Theamountshallbelimitedby:
16 (a)Theestimatedcostofsuchproject;and
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (b)Projectexpendituresmadewithintheestimatedconstructionperiodforsuch
18project.
19
20Baseraterecoveriesarisingfrominclusionofconstructionworkinprogressinbase
21ratesaresubjecttorefund,togetherwithinterestontherefundedamountatthesame
22rateastherateofinterestfordelinquenttaxesdeterminedbythedirectorofrevenuein
23accordancewithsection32.065,ifandtotheextentthecommissiondetermines,ina
24subsequentcomplaintorgeneralrateproceeding,thatconstructioncostsgivingriseto
25theconstructionworkinprogressincludedinratebasewereimprudentlyincurred.
26Returndeferredundersubdivision(2)ofsubsection3ofsection393.1400forplantthat
27hasbeenincludedinbaseratesasconstructionworkinprogressshalloffsettheamounts
28deferredundersection393.1400.
29 (2)ProvisionsofthissubsectionshallexpireonDecember31,2035,unlessthe
30commissiondetermines,afterahearingconductedin2035uponasubmissionfroman
31electricalcorporationofanapplicationrequestinganextension,thatgoodcauseexiststo
32extendtheprovisionsofthissubsectionthroughDecember31,2045.Thesecretaryof
33thecommissionshallnotifytherevisorofstatuteswhentheconditionssetforthforthe
34extensionofthissubsectionhavebeenmet.
393.1250.1.Thissectionshallbeknownandmaybecitedasthe"Missouri
2NuclearCleanPowerAct",thepurposeofwhichistoenabletheconstructionofclean
3baseloadelectricgeneratingplants.Thissectionshallnotapplytocleanbaseload
4electricgeneratingplantsthatareincommercialoperationbeforeAugust28,2025.
5 2.Asusedinthissection,thefollowingtermsmean:
6 (1)"Cleanbaseloadgeneratingplant",anewnuclear-fueledelectricgenerating
7facilitylocatedinthisstatethatisdesignedtobeoperatedatsixhundredmegawattsor
8lessandisintendedinwholeorinparttoserveretailcustomersofanelectrical
9corporationinMissouri;
10 (2)"Constructionworkinprogress",theelectricalcorporation'sshareofall
11capitalcostsassociatedwithacleanbaseloadgeneratingplantorrenewablesource
12generatingfacility,whichhavebeenincurredbuthavenotbeenincludedinthe
13electricalcorporation'splantinservice,andarerecordedintheFederalEnergy
14RegulatoryCommission'sUniformSystemofAccountsPrescribedforPublicUtilities
15andLicenseesSubjecttotheProvisionsoftheFederalPowerAct,BalanceSheetChart
16Accounts,asconstructionworkinprogressforelectricplantsin18CFRPart101,or
17anyotheraccountestablishedintheUniformSystemofAccountsfortherecordingof
18constructionworkinprogress.
HB1084 2 19 3.Theprovisionsofsection393.135shallnotapplytoacleanbaseload
20generatingplantiftheplantisratedatsixhundredmegawattsorless.Beforeanysuch
21constructionworkbegins,anelectricalcorporationseekingtoincludeconstruction
22workinprogressinratesshallfilewiththecommissionaplandetailingtheprojected
23costsoftheprojectandtheplantorecoverthosecoststhroughrates.Costsrecovered
24byanelectricalcorporationundertheprovisionsofthissectionaresubjecttoinclusion
25orexclusionfromratesinaratemakingproceedingpursuanttothecommission's
26authoritytodeterminejustandreasonablerates.Inaddition,thecommissionmay
27authorizeanelectricalcorporationtomakeordemandchargesforservicebasedin
28wholeorinpartonadditionalamortizationstomaintaintheelectricalcorporation's
29financialratiosthatwill,inthecommission'sjudgment,betterenabletheelectrical
30corporationtocost-effectivelyconstructacleanbaseloadgeneratingplant.
31 4.Thecommissionmaypromulgaterulestoassistintheimplementationofthis
32section.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
33createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
34complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
35section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
36vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
37effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
38thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
3928,2025,shallbeinvalidandvoid.
393.1900.1.Thecommissionshall,byAugust28,2026,andeveryfouryearsor
2asneededthereafter,commenceanintegratedresourceplanningproceedingfor
3electricalcorporations.Aspartofsuchproceeding,thecommissionshall:
4 (1)Identifyanyrequiredplanningreservemarginsandapplicablelocalclearing
5requirements,andanyproposedplanningreservemarginsandlocalclearing
6requirementswhicharescheduledtotakeeffectwithinarelevantfuturetimeframe;
7 (2)Identifysignificantexistingorproposedstateorfederalenvironmental
8regulations,laws,orrulesandidentifyhoweachsuchregulation,law,orrulemayapply
9toelectricalcorporationsinthisstate;
10 (3)Establishanalternativeresourceplanorplansthatshallbeincludedinan
11electricalcorporation'sintegratedresourceplanfilingpursuanttosubsection3ofthis
12section,andthefactorsthateachelectricalcorporationmaytakeintoaccountin
13developingsuchplans,including,butnotlimitedto,allofthefollowing:
14 (a)Projectedplanningreservemarginsandlocalclearingrequirementsandthe
15environmentalregulations,laws,orrulespursuanttosubdivisions(1)and(2)ofthis
16subsection,respectively;
HB1084 3 17 (b)Projectionsoffutureloads,includingbothenergyandcapacity,overthe
18planningperiod;
19 (c)Thesupply-sideanddemand-sideresourcesthatmayreasonablyaddressany
20needforadditionalenergyandcapacity,including,butnotlimitedto,thetypeof
21generationtechnologyforanyproposedgenerationfacility,projectedloadimpactdueto
22electrificationoreconomicdevelopmentprojects,andprojectedloadmanagementand
23demandresponsesavings;
24 (d)Theprojectedcostofdifferenttypesoftechnologiesandfuelusedforelectric
25generation;and
26 (e)Anyotherfactorsthecommissionmayordertobeconsidered;
27 (4)Identifyordesignateanysoftware,datastandards,andformattingtobeused
28inmodelingthealternativeresourceplanorplanspursuanttosubdivision(3)ofthis
29subsection;
30 (5)Completesuchproceedingnolessthaneighteenmonthspriortothefirst
31integratedresourceplanfilingpursuanttosubsection2ofthissection.
32 2.NotlaterthanAugust28,2027,thecommissionshallpublishaschedulefor
33electricalcorporationstofileanintegratedresourceplaneveryfouryears,withthefirst
34integratedresourceplanorplansfilingtooccurnotbeforethefirstdayofthe
35nineteenthmonthafterpublicationofsuchschedule.Eachelectricalcorporationshall,
36pursuanttothepublishedschedule,filewiththecommissionanintegratedresourceplan
37thatincludesanalternativeresourceplanorplansmeetingtherequirementsof
38subdivision(3)ofsubsection1ofthissection,andsuchotheralternativeresourceplans
39astheelectricalcorporationdeemsappropriate.Allalternativeresourceplansshall
40coveraminimumsixteen-yearplanninghorizon.Allsuchplansshallreflectprojections
41ofanelectricalcorporation'sloadobligationsandhowundereachsuchplanthe
42electricalcorporationwouldreliablymeetitsprojectedloadobligationsoversuch
43periodsconsistentwithapplicableplanningreservemargins,localclearing
44requirements,andapplicablestateandfederalenvironmentalregulations,laws,or
45rules.
46 3.Withoutlimitingtherequirementssetforthinsubsection2ofthissection,an
47electricalcorporation'sintegratedresourceplanfilingshallinclude:
48 (1)Informationregardinggeneratingunitsintheelectricalcorporation's
49existingportfolio,including,butnotlimitedto,unitcharacteristics,currentand
50expectedaccreditedcapacitybyseason,licensingstatus,currentdepreciationratesfor
51eachgeneratingunit,currentlyexpectedretirementdatesand,ifapplicable,any
52remainingusefullifeofeachgeneratingunit,andidentificationofpotentialcapital
HB1084 4 53projectsthatarereasonablyexpectedtoresultintheextensionoftheretirementdateof
54eachgeneratingunit;
55 (2)Plansformeetingcurrentandfuturegenerationattributeneeds,with
56estimatesofthecapitalandoperatingandmaintenancecostsovertheplanninghorizon
57forallproposedconstructionandmajorinvestmentsinnewgeneratingunits,including
58costsassociatedwithtransmissionordistributioninfrastructurethatwouldberequired
59tointegratesuchinvestmentsintotheelectricalcorporation'ssystem;
60 (3)Identificationofthegenerationattributenecessaryfortheprovisionofsafe
61andadequateserviceatjustandreasonablerates;
62 (4)Analysisofthecost,performance,expectedaccreditedcapacitybyseason,
63andviabilityofallreasonableoptionsavailabletomeetprojectedgenerationattribute
64needs,including,butnotlimitedto,existingelectricgenerationfacilities,andan
65explanationwhyanelectricalcorporationselectedtheoptionsoutlinedintheplan;
66 (5)Analysisofalternativeresourceplanstotestriskfactorsidentifiedbythe
67electricalcorporation;
68 (6)Anexplanationofhowtheelectricalcorporationusescapacityexpansion
69optimizationsoftwareforthedevelopmentofalternativeresourceplans;
70 (7)Projectionsofrateimpactsincludingrateimpactsfromfuelcostsofthetop
71fouralternativeresourceplansincludingthepreferredplanfortheperiodscoveredby
72theplan;
73 (8)Forecastsoftheelectricalcorporation'ssalesbyhourunderreasonable
74scenarios;
75 (9)Thetypesofgenerationtechnologiesproposedforgenerationfacilities
76containedintheplansandtheproposedaccreditedcapacityofthegenerationfacilities
77asestimatedbythecorporationandtherelevantregionaltransmissionorganizationor
78independentsystemoperator,includingprojectedfuelcostsunderreasonablescenarios;
79 (10)Ananalysisofpotentialneworupgradedelectrictransmissionand
80distributionoptionsfortheelectricalcorporation;
81 (11)Analysisoftheprojectedfirmgastransportationcontractsornaturalgas
82storagetheelectricalcorporationwillholdtoprovideanadequatesupplyoffueltonew
83generationfacilities;
84 (12)Projectedloadmanagement,demandresponseimpact,andpeakdemand
85reductionfortheelectricalcorporation,including,butnotlimitedto,themagnitudeof
86expectedloadimpactsduringtheanticipatedhours,seasons,andyearsandthe
87projectedcostsforsuchplans;
HB1084 5 88 (13)Anexplanationofhowtheelectricalcorporationwillcomplywithall
89applicablestateandfederalenvironmentalregulations,laws,andrules,andthe
90projectedcostsofcomplyingwiththoseregulations,laws,andrules;
91 (14)Expectedresourceplanningandsystemimpactsofdraftprogramsand
92mechanismsassociatedwithnewload,reducedload,orretainedloadassociatedwith
93economicdevelopmentratesorridersandprogramsofferedinaccordancewithsection
94393.1075,aswellasotherprogramsofferedundercurrentlaw;
95 (15)Resultsfromarequestforinformationorproposalstoprovideanynew
96supply-sideresourcesneededtoservethecorporation'sprojectedelectricload,
97applicableplanningreservemargin,andlocalclearingrequirementduringtheinitial
98four-yearplanningperiod.Therequestforinformationorproposalsmaydefine
99qualifyingperformancestandards,contractterms,technicalcompetence,capability,
100reliability,creditworthiness,pastperformance,andothercriteriathatresponsesor
101respondentstotherequestforinformationshallmeetinordertobeconsideredbythe
102corporationinitsintegratedresourceplan.Respondentstoarequestforinformationor
103proposalsmayrequestthatcertainproprietaryinformationbetreatedasconfidentialor
104highlyconfidentialpursuanttothecommission'sgoverningrules.Acorporationthat
105issuesarequestforinformationorproposalsunderthissubsectionshallusethe
106resultinginformationorproposalstoinformitsintegratedresourceplanandincludeall
107ofthesubmittedinformationorproposalsasattachmentstoitsintegratedresourceplan
108filing;
109 (16)Selectionofapreferredresourceplan;
110 (17)Delineationofanimplementationplancoveringafour-yearimplementation
111periodendingthreehundredsixty-fivedaysaftertheelectricalcorporation'snext-
112scheduledquadrennialintegratedresourceplanfiling,whichshallspecifythe
113constructionoracquisitionbytheutilityofspecificsupply-sideresourcesora
114specifiedquantityofsupply-sideresourcesbysupply-sideresourcetype,orboth,for
115whichconstructionoracquisitionisplannedtocommencewithinsaidfour-year
116implementationperiod;and
117 (18)Anyotherinformationthatthecommissionmayspecifybyrule.
118 4.Thecommissionshall,afterahearingisconducted,issueareportandorder
119nolaterthanthreehundredsixtydaysaftertheelectricalcorporationfilesanintegrated
120resourceplanunderthissection,unlessthecommissiongrantsitselfanextensionfor
121goodcausefortheissuanceofthereportandorder.Uptoonehundredfiftydaysafter
122anelectricalcorporationmakesitsinitialintegratedresourceplanfiling,theelectrical
123corporationmayfileanupdateofthecostestimatesprovidedundersubdivision(2)of
124subsection3ofthissectionifthecostestimateshavemateriallychanged.Anelectrical
HB1084 6 125corporationshallnotmodifyanyotheraspectoftheinitialintegratedresourceplan
126filingunlessthecommissiongrantstheelectricalcorporationtheabilitytodoso.The
127commission'sreportandordershalldeterminewhethertheelectricalcorporationhas
128submittedsufficientdocumentationandselectedapreferredresourceplanthat
129representsareasonableandprudentmeansofmeetingtheelectricalcorporation's
130loadservingobligationsatjustandreasonablerates.Inmakingthedetermination,the
131commissionshallconsiderwhethertheplanappropriatelybalancesallofthefollowing
132factors:
133 (1)Resourceadequacytoserveanticipatedpeakelectricloadandseasonalpeak
134demandforecasts,applicableplanningreservemargin,localclearingrequirements,and
135theroleofenergyandcapacitymarkets;
136 (2)Reliability;
137 (3)Rateimpacts;
138 (4)Overallcost-effectivenessinprovidingservice;
139 (5)Commoditypricerisks;
140 (6)Diversityofsupply-sideresources;
141 (7)Competitivepricing;
142 (8)Participationinregionaltransmissionorganizationmarkets;and
143 (9)Compliancewithapplicablestateandfederalenvironmentalregulations.
144 5.(1)Ifthecommissiondeterminesthatthepreferredresourceplanisa
145reasonableandprudentmeansofmeetingtheelectricalcorporation'sloadserving
146obligations,suchdeterminationshallconstitutethecommission'spermissionforthe
147electricalcorporationtoconstructoracquirethespecifiedsupply-sideresources,ora
148specifiedquantityofsupply-sideresourcesbysupply-sideresourcetype,orboth,that
149werereflectedintheimplementationplansubmittedundersubdivision(15)of
150subsection3ofthissection,providedthatconstructioncommencesortheacquisition
151agreementisexecutedwithinthefour-yearimplementationperiod.Withrespecttosuch
152resources,whentheelectricalcorporationfilesanapplicationforacertificateof
153convenienceandnecessitytoauthorizeconstructionoracquisitionofsuchresourceor
154resourcespursuanttosubsection1ofsection393.170,thecommissionshallbedeemedto
155havedeterminedthatthesupply-sideresourcesforwhichsuchadeterminationwas
156madearenecessaryorconvenientforthepublicinterest.Insuchacertificateof
157convenienceandnecessityproceeding,thecommission'sinquiryshallbelimitedto
158consideringtheelectricalcorporation'squalificationstoconstructandoperatethe
159resources,theelectricalcorporation'sabilitytofinancetheconstructionoracquisition
160oftheresources,andsitingconsiderations.Thecommissionshalltakeallreasonable
161stepstoexpeditesuchacertificateofconvenienceandnecessityproceedingandshall
HB1084 7 162issueitsdecisioninsuchaproceedingwithinonehundredtwentydaysofthedatethat
163theelectricalcorporationfilesitsapplication.Anelectricalcorporationshallannually,
164ormorefrequentlyifrequiredbythecommission,reporttothecommissionthestatusof
165supply-sideresourcesbeingimplementedduringtheimplementationperiod.
166 (2)Ifthecommissiondeterminesthatthepreferredresourceplan,inwholeorin
167part,isnotareasonableandprudentmeansofmeetingtheelectricalcorporation'sload
168servingobligations,thecommissionshallhavetheauthoritytospecifyinitsreportand
169orderthedeficienciesinthepreferredresourceplanandmayrequiretheelectrical
170corporationtomakeafurtherfilingwithinsixtydaysafterissuanceofthereportand
171orderaddressingthedeficienciesandtheelectricalcorporationmaypropose
172modificationstoitsoriginalpreferredresourceplan.Ifsuchanorderrequiringa
173furtherfilingbytheelectricalcorporationisissued,thecommission'sreportandorder
174issuedunderthissubsectionshallnotbefinalforpurposesofrehearingpursuantto
175section386.500oranappealpursuanttosection386.510.Otherpartiestothe
176integratedresourceplandocketshallhavesixtydaystorespondtotheelectrical
177corporation'sfurtherfiling,unlessthecommissiongrantsanextensionforgoodcauseto
178respondtotheelectricalcorporation'sfurtherfiling.Withinsixtydaysafterthe
179deadlineforsuchotherparties'filings,thecommissionshallissueareportandorder,
180whichshallbefinalforpurposesofrehearingpursuanttosection386.500,andappeal
181pursuanttosection386.510,indicatingwhetherthedeficiencieshavebeencuredbythe
182electricalcorporation'sfurtherfilingandthecommissionmayapprovetheelectrical
183corporation'smodifiedpreferredresourceplanandmayapprovespecificsupply-side
184resources,oraspecifiedquantityofsupply-sideresourcesbysupply-sideresourcetype,
185orboth.Ifthecommissionfindscontinueddeficienciesintheelectricalcorporation's
186modifiedpreferredresourceplan:
187 (a)Thecommissionmayinitiateacomplaintproceedingpursuanttothe
188provisionsofsection393.270;
189 (b)Theelectricalcorporationshallnotbeeligibleforalimitedinquiryinany
190proceedingundersection393.170assetforthinsubdivision(1)ofthissubsectionforany
191resourceadditionsnotapprovedbythecommission;and
192 (c)Theelectricalcorporationshallnotbeeligibleforconstructionworkin
193progressassetforthinsubdivision(3)ofthissubsectionforanyresourceadditionsnot
194approvedbythecommission.
195 (3)Notwithstandingsection393.135tothecontrary,ifapprovedinaproceeding
196grantingpermissionandapprovalundersubsection1ofsection393.170,anelectrical
197corporationmaybepermittedtoincludeinthecorporation'sratebaseanyamounts
198recordedtoconstructionworkinprogressfortheinvestmentsforwhichpermissionis
HB1084 8 199givenundersubdivision(1)ofsubsection5ofthissection.Theinclusionofconstruction
200workinprogressshallbeinlieuofanyotherwiseapplicableallowanceforfundsused
201duringconstructionthatwouldhaveaccruedfromandaftertheeffectivedateofnew
202baseratesthatreflectinclusionoftheconstructionworkinprogressinratebase.The
203commissionshalldetermine,inaproceedingundersection393.170,theamountof
204constructionworkinprogressthatmaybeincludedinratebase.Theamountshallbe
205limitedby:
206 (a)Theestimatedcostofsuchproject;and
207 (b)Projectexpendituresmadewithintheestimatedconstructionperiodforsuch
208project.Baseraterecoveriesarisingfrominclusionofconstructionworkinprogressin
209baseratesaresubjecttorefund,togetherwithinterestontherefundedamountatthe
210samerateastherateofinterestfordelinquenttaxesdeterminedbythedirectorof
211revenueinaccordancewithsection32.065,ifandtotheextentthecommission
212determines,inasubsequentcomplaintorgeneralrateproceeding,thatconstruction
213costsgivingrisetotheconstructionworkinprogressincludedinratebasewere
214imprudentlyincurred.Returndeferredundersubdivision(2)ofsubsection3ofsection
215393.1400forplantthathasbeenincludedinbaseratesasconstructionworkinprogress
216shalloffsettheamountsdeferredundersection393.1400.
217 6.Thecommissionshallpromulgaterulesnecessarytoimplementtheprovisions
218ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
219thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
220itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
221section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
222vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
223effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
224thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
22528,2025,shallbeinvalidandvoid.
226 7.Asusedinthissection,thefollowingtermsshallmean:
227 (1)"Firmgastransportation",ananticipatedagreemententeredintobetween
228theelectricalcorporationandanaturalgastransmissionproviderforasetperiodof
229timetoprovidefirmdeliveryofnaturalgastoanelectricgenerationfacility;
230 (2)"Generationattribute",thecapacity,energy,andothergeneratingunit
231capabilitiesusedinregionalenergyandcapacitymarketstodifferentiateservicesthat
232canbeprovidedbyvarioustypesofgeneratingunits.
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